TORONTO, December 15, 2006 - The General Partner of First Asset Renewable Power Flow-Through Limited Partnership (the "Partnership") wishes to update Limited Partners with respect to the anticipated timing of a listing of the units of the Partnership or an alternative liquidity event. When the Partnership was launched, the General Partner anticipated making an application for listing the units on a Canadian stock exchange by December 31, 2006, and in any event no later than March 31, 2007, so long as the General Partner could conclude that the Partnership is capable of making meaningful distributions to Limited Partners.
The announcement by the Federal Minister of Finance on October 31, 2006 of the "Tax Fairness Plan for Canadians" (the "Proposal") proposes, among other things, to tax the income of certain types of trusts and partnerships, including those whose equity securities are listed on a stock exchange. However, based on the information supplied in the Proposal, there is considerable uncertainty about the application of the Proposal. The General Partner believes it is prudent to wait until draft legislation is tabled, or until further clarity is given on the application of the Proposal, before the Partnership lists its units, or proposes some other form of liquidity for Limited Partners. The Federal Minister of Finance has indicated that such draft legislation will be announced prior to the end of 2006. Based on that guidance, the General Partner and its advisors will assess the impact of any draft legislation (or further guidance) on the Partnership.
Based on the analysis of any impact of the Proposal and the General Partner's current expectation of the commencement of distributions, the General Partner currently anticipates making a proposal to provide liquidity for Limited Partners prior to March 31, 2007, which will attempt to factor in any potential impact on the Partnership of the Proposal.
For further information, please call Paul Dinelle, Executive Vice-President, First Asset Power Funds Inc. at 416-642-1289 or 1-877-642-1289, or visit www.firstassetfunds.com.